Financial Literacy and Pension Plan Participation in Italy

Elsa Fornero and Chiara Monticone

No 111, CeRP Working Papers from Center for Research on Pensions and Welfare Policies, Turin (Italy)

Abstract: By requiring individuals to decide whether to participate in (newly established) pension funds, how much to contribute and how to invest their retirement wealth, pension reforms have raised concerns about the ability of households to deal with financial decisions. Using the Bank of Italy's Survey on Household Income and Wealth, our empirical analysis shows that most individuals lack knowledge of basic concepts such as interest rates and inflation. Males, the more educated and residents in the Centre-North possess higher literacy. As for the effects, financial literacy has a positive and significant impact on the probability of pension plan participation.

Keywords: Financial literacy; retirement planning; pension plan participation (search for similar items in EconPapers)
JEL-codes: D91 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-03
New Economics Papers: this item is included in nep-age and nep-eur
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Citations: View citations in EconPapers (123)

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Related works:
Journal Article: Financial literacy and pension plan participation in Italy* (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:crp:wpaper:111

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